Precinct's $550m tower plan queried

Building is to start next year on the 36-level glass tower.

Questions have been raised about Precinct Properties' planned $550 million 35-level Auckland tower.

Herald reader Max Reilly said such a tower would block waterfront views of all other buildings and he asked how planning regulations could allow that.

Regulations sought a graduated building elevation, rising from the waterfront and gaining height towards the city, Reilly said.

But Scott Pritchard, Precinct chief executive, said the tower was designed to retain views from as many vantage points as possible.

"The site has been under-used but consented for an office tower for a long time. We think everyone will have been aware a development needed to happen here," he said.

Pritchard said it was up to the council to address any policy questions.

"But of course our plans will be fully compliant with all requirements. We believe the new tower will add a lot of excitement to the waterfront skyline. As above, questions like this are addressed as part of the normal consent process," he said.

Precinct's 1900sq m purchase is conditional on successful rezoning of the land which includes the road-stopping process and a plan change so commercial development on what is now public land can go ahead, Precinct said in an investor presentation released to the NZX.

"Auckland Council will use funds to provide alternate public space," Precinct said, also citing "an agreement with Auckland Council to provide an east-west pedestrian laneway through the Downtown development, linking key transport infrastructure".

Precinct is buying the area where the volcano fire/fountain now stands outside Whitcoulls, between the HSBC Tower and the Zurich block.

Longer-term council plans are to abolish the busy road which now runs through the centre of the square on public land and shift buses further into Britomart and a block west to Lower Albert St.

Precinct also struck a deal with Auckland Transport, so Central Rail Link tunnels are built ready for that public project to proceed.

Pritchard said the tower's costs had risen from $400 million-$500 million to $550 million through plans for a larger building as well as construction cost escalations.

Auckland Transport will pay Precinct $10.7 million for underground construction costs and $9 million for an east-west laneway.